2 March 2023: Wealth Product Ideas
| Fund Name (Ticker) | CSOP Hang Seng TECH Index ETF (3033 HK) |
| Description | The investment objective of the CSOP Hang Seng TECH Index ETF is to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of Hang Seng TECH Index. The Manager will use a full replication strategy to achieve the investment objective of the ETF. |
| Asset Class | Equity |
| 30-Day Average Volume (as of 28 Feb) | 456,034,800 |
| Net Assets of Fund (as of 28 Feb) | HK$20,568,482,963.00 |
| 12-Month Trailing Yield | N.A. |
| P/E Ratio (as of 28 Feb) | 54.867 |
| P/B Ratio (as of 28 Feb) | 2.198 |
| Management Fees (Annual) | 0.99% |
Top 10 Holdings
(as of 28 Feb 2023)
- BUY Entry –4.00 Target – 4.50 Stop Loss – 3.75
- The National People’s Congress (NPC) will begin on Sunday, anticipating the largest government reshuffle in a decade. During this meeting, China’s parliament will outline their 2023 work report for China’s economic and social development, which is expected to focus on stimulating its Covid-beaten economy. The NPC will also install new faces at the top of main economic and regulatory bodies including the central bank, replacing a generation of leaders seen as more reform-oriented.
- “Digital China”
- The Communist Party of China Central Committee and the State Council released a guideline that emphasized the importance of building a digital China, which supports the development of the country’s new competitive edge. The plan sets a clear direction for digital development, including promoting the integration of digital technologies with the real economy and accelerating their application in key areas such as finance, agriculture, education, and medical services.
- By 2025, China aims to achieve effective interconnectivity in digital infrastructure, improve the digital economy, and adopt digital technology in various areas. Additionally, China plans to speed up the buildout of 5G and gigabit optical networks, optimize data center deployment, and bring digital technologies to social sectors like healthcare and education.
- Government officials will be partially assessed based on their participation in China’s digital development.
- With over 2.31 million 5G base stations installed, China plans to continue supporting the healthy development of Big Tech firms.
(Source: Bloomberg)
| Fund Name (Ticker) | Global X China Electric Vehicle and Battery ETF (2845 HK) |
| Description | The Global X China Electric Vehicle and Battery ETF (2845/9845) seeks to invest in Chinese companies positioned to benefit from increasing penetration of electric vehicles, including companies that produce electric vehicles (“EVs”), EV components such as lithium batteries, equipment for battery production, and critical battery materials such as lithium and cobalt. |
| Asset Class | Equity |
| 30-Day Average Volume (as of 28 Feb) | 151907 |
| Net Assets of Fund (as of 28 Feb) | HKD$3,432,401,544.62 |
| 12-Month Trailing Yield (as of 31 Jan) | -14.23% |
| P/E Ratio | N.A. |
| P/B Ratio | N.A. |
| Management Fees | 0.68% |
Top 10 Holdings
(as of 30 Dec 2022)
- BUY Entry – 114.0 Target – 123.0 Stop Loss – 109.5
- Upcoming China’s Two Sessions. A political and economical event, the upcoming Two session will set the tone on geopolitics as well as on economic targets and policy directions. Xi Jinping is expected to look to focus more on economic stability, technological self-reliance, as well as infrastructure investments following the two session.
- Vehicle purchase tax exemption for new energy vehicle. China recently announced that new energy vehicles with a purchase date of 2023 would continue to be exempted from vehicle purchase tax, as part of China’s effort to drive consumption as they think that the promotion of economic recovery and sustainable and healthy development mainly depends on consumption.
- EVs price cut. The selling prices of most EVs in China have been cut down, sparked by the aggressive price cuts by Tesla. This reduction in price would drive the internal demand for EVs higher as more consumers are presented with a cheaper price point for EVs. The rise in internal demand for EVs presents growth and opportunities within the EVs industry within the China market.
- Room for growth for EVs. China is shifting towards green energy, scaling up its nationally determined contributions, The country aims to peak its carbon dioxide emission before 2030 and achieve carbon neutrality by 2060. The current EV market in China only makes up 3% – 5% of around 400M light vehicles in China. This transition to cleaner energy in China would present plenty of growth and opportunities within the EVs and battery market.
(Source: Bloomberg)
